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Capital Gains Tax (CGT) Changes to the deadlines for filing and paying CGT on the disposal of UK property

The deadlines for filing and paying CGT arising on the sale of an interest in UK property changed as from 6 April 2020. A further change was announced at the recent Autumn budget on Wednesday 27 October 2021.

When the changes were initially introduced in April 2020, UK residents making a gain which is liable to CGT from the disposal of residential property situated in the UK had 30 days from conveyance in which to notify HMRC and pay across any CGT that is due.

The recent change made by the Chancellor has extended the reporting window to within 60 days of completion for relevant disposals completed on or after 27 October 2021. Please note therefore that relevant disposals that completed before 27 October 2021 are still subject to the 30 day deadline.

Non-UK residents have been subject to these reporting requirements since April 2015, regardless of whether there is a capital gain or not. As from 6 April 2020, however, it is no longer possible for non-residents to defer payment via the self-assessment tax return, with any tax owed to be paid within the 30 day reporting and payment period for disposals made before 27 October 2021 and within the 60 day reporting and payment period for disposals made on or after 27 October 2021.

The reporting and payment deadlines apply to the disposal of UK residential property, but also direct and indirect disposals of non-residential property by non-UK residents.

An online service is available, enabling taxpayers to report the disposal of interests in UK property and pay the relevant CGT that is due. Non-compliance will result in a late filing penalty being imposed, whilst interest will accrue if the tax remains unpaid after the relevant deadline.

Ward Williams can assist with the following:

  • Determine whether a land and property transaction needs to be notified to HMRC within the reporting period (30 or 60 days).
  • Calculate the capital gains tax that is due.
  • Report the property sale to HMRC via the new online service.

For further information please contact Simon Boxall on property@wardwilliams.co.uk. For more information on our property services please visit our website.

About the author

Simon is the Tax Director at Ward Williams and has more than 20 years of practical experience working in the tax profession.

 

Specialising in personal tax, Simon qualified as a Tax Technician in 2007, having been awarded with the Ivison medal for attaining the highest mark in the Personal Taxation paper in 2006.

 

As department head, Simon oversees the tax team across the Ward Williams group, whilst managing a diverse portfolio of clients including high net worth individuals, doctors, directors of owner managed businesses, partnerships and sole traders.

simon.boxall@wardwilliams.co.uk

01895 236335